Army technical officers worked throughout Wednesday examining a vehicle parked near the city's courthouse.

The alert was raised late on Tuesday evening.

The operation meant court business was rescheduled to Armagh and caused severe tailbacks on thoroughfares in and around the city.

UUP deputy leader Danny Kennedy condemned the bomb alert as a "symbolic attack on the courts of justice while talks are ongoing over the devolution of policing and justice powers".

"This incident has caused major inconvenience for the local community as well as impeding court proceedings," the Newry and Armagh MLA said.

"The repercussions, however, don't stop there. There has been an adverse effect on the local economy, with businesses in the Newry area thrown into chaos as a result of serious and widespread traffic congestion."

He added: "This sort of activity is a remnant of our dark past and is rejected by all right-thinking members of this community."